Real Breakout or very dangerous False Break ?
$BRK.B gapped up above a daily downtrend line yesterday following Warren Buffet's letter.
The trend line, that started back in November 2015, was broken but the price was rejected from the 200 SMA line and the completion of bearish Bat pattern.
Now, $BRK.B price needs to prove that the breakout is real.
1. It must close the week above the daily downtrend line.
2. It should overcome the 200 SMA line to signal stronger bullish move.
If $BRK.B will decline below the daily downtrend line, it will be a bearish signal that can be saved only if the price will find support near 130 - The meeting zone of 2 daily SMA lines.
So where do you think BRK.B is heading? and what does it means for the stock markets?
Tomer, The MarketZone.net
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The trend line, that started back in November 2015, was broken but the price was rejected from the 200 SMA line and the completion of bearish Bat pattern.
Now, $BRK.B price needs to prove that the breakout is real.
1. It must close the week above the daily downtrend line.
2. It should overcome the 200 SMA line to signal stronger bullish move.
If $BRK.B will decline below the daily downtrend line, it will be a bearish signal that can be saved only if the price will find support near 130 - The meeting zone of 2 daily SMA lines.
So where do you think BRK.B is heading? and what does it means for the stock markets?
Tomer, The MarketZone.net
Follow me on TradingView
Follow my blog - goo.gl/TWWN8C
Subscribe to my mailing lists - goo.gl/JfOLoR
Comment:
Correction - Trend line started on Nov 2014 (not 2015)